PBZ BANK LTD
USD Buy: 2330.000 Sell: 2372.000 USD 5,10 & 20 Buy: 2200.000 Sell: 2372.000 USD 1 Buy: 2000.000 Sell: 2372.000 GBP Buy: 2820.000 Sell: 2949.000 GBP/USD Buy: 1.204 Sell: 1.260 EUR Buy: 2475.000 Sell: 2591.000 EUR/USD Buy: 1.057 Sell: 1.106 UGA Buy: 0.450 Sell: 0.790 KSH Buy: 16.500 Sell: 23.500 ZAR Buy: 100.000 Sell: 150.000 OMR Buy: 5980.000 Sell: 6120.000 AED Buy: 610.000 Sell: 655.000 SAR Buy: 560.000 Sell: 650.000
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GUARANTEES
Finance/Loan Guarantee:

This guarantee is issued by the bank to cover borrowing requirements of a customer after having been provided with acceptable security. The bank will not be in a position to extend the facility due to internal or external limitations. Such guarantees will be issued only in unavoidable situations to potential customer. The guarantee shall be limited to amount and period.


Shipping Guarantee:

This type of guarantee is provided when the shipment under a letter of credit has already arrived at the port of destination and the relevant documents has not yet arrived.


Advance payment and / or progress payment guarantees

This is guarantee which gives protection to the buyer whom has made an advance or progress payment to the exporter before the contract has been completed.

This guarantee is used to provide repayment of the advance or progress payment should the exporter fails to carry out the contracted terms.

Requirements
Requirements:

• He/ She should be a PBZ customer for at least six months
• A customer should provide:
- Business license
- TIN certificate
- Physical business location
- One recent passport size photos
- Certified copy of passport
- Certified copy of residency permit
• Audited financial statements for a period not less than two years
• Cash flow projections
• Title deed of fixed security
• Other information depending on the nature of the business.

Additional requirements for limited liability company and partnership enterprises
For Limited Liability Company

• A customer should provide board resolutions
• CVs of directors
• IDs of directors
• Memorandum and Articles of associations
• Certified copy of Certificate of incorporation

For partnership enterprises
For partnership enterprises

• Partnership deed
• CVs of managing directors
• IDs of directors
• Certified copy of Certificate of registration

Benefits
Benefits:

• Helps the business to finance short-term obligations
• An overdraft provides you with cash for unplanned expenses
• An overdraft will provide you with the comfort of knowing that you have instant access to extra cash for emergencies
• You can use as much of your agreed overdraft limit as you need whenever you need it. The total limit is always available to you for use.

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BONDS

A bond is sometimes known as surety. A bond is a guarantee issued by the bank to the principal or employer guaranteeing that the oblige (bank customer) will fulfil an obligation or series of obligations to the employer and that in event that obligations are not met, the employer will recover its losses via the bond issued by the Bank.


Types of bonds:

Examples of bonds that are commonly used at the bank are:

1. Custom bonds
Custom bonds

These bonds are issued to enable the customer to obtain release of goods without payment of customs duty.

2. Performance bonds
Performance bonds

These are the bonds containing an undertaking to pay a certain sum to the buyer if the seller or contractor fails to carry out the terms of the contract.

The purpose is to secure any claims by the buyer on seller arising from default in delivery or performance of the terms of the contract.

The period of these bonds will vary according to the terms of the related contract.

3. Bid or Tender bonds
Bid or Tender bonds

It is an undertaking given by the seller of the goods or a supplier of services to the buyer or purchaser.

Transactions for purchase of goods or procurement of services, the buyer or purchaser calls for competitive quotations (bid/tender) from potential suppliers.

The supplier is required to give a bond to the buyer / purchaser to supply the goods or execute contract or service at a certain price within a certain time and on the terms and conditions stipulated by the buyer/ purchaser. Generally, the buyer / purchaser require the supplier’s bank to join in such undertaking by giving a bond.

The bank will consider among other things risks inherent tender/bid bonds such as:
• Changes in the market
• Changes in price structures
• Inflation
• Additional costs
Tender bonds entail additional obligations e.g. the bank will be requested to issue advance payment guarantee or performance bonds.

4. Warranty bonds
Warranty bonds

These are the bonds issued by the Bank to the buyer to secure any claims by the buyer on the seller due to possible defects appearing after delivery.

5. Retention bond
Retention bond

Retention funds are funds held by the Bank on behalf of seller or contractor for the fulfilment of the obligations to the buyer. Retention funds shall be released to the seller or contractor upon successful fulfilment of obligation to the buyer or vice versa.



Issuing bonds and guarantees

The decision of granting a bond or a guarantee is crucial and it has the same weight as granting any other credit facility.

The approval for granting of such facilities shall be vested to the managing director with recommendation from the Director of Banking Operations upon proper evaluation of the inherent risks of the bond issued.

Procedures for issuing Bonds and Guarantees
Procedures for issuing Bonds and Guarantees

• Application for guarantee from customer shall be made in writing
• Issuance of guarantee and or bonds will be secured by 100% cash cover
• At the discretion of the Bank, it may accept other forms of collateral such as mortgage over landed property
• Applicant / customer must give counter-guarantee to the bank
• Applicant will also provide an authority to the Bank to debit customer’s account to recover money paid to the principal
• Customer must give the Bank sufficient time to evaluate the guarantee requests. Application must be submitted at least a week before guarantee is issued
• Credit manager shall resist undue pressure by customer to issue the guarantee without proper analysis
• Credit manager shall obtain guarantee and counter guarantee application from an applicant
• The credit manager shall seek approval to issue the guarantee including the text of the guarantee from the Director of Banking Operations
• He / She shall give a specific number for each a guarantee
• Credit manager shall advise issuance of the guarantee to the applicant by the tested telex or in writing with the necessary signature
• The credit manager shall ensure that the guarantee papers are filled accordingly

The credit manager shall also observe the following
The credit manager shall also observe the following:

• It must be stressed that under no circumstances should the Bank become involved in any contractual dispute relating to a claim under a guarantee.
• The obligation of bank is to honour its commitment and to pay "on first demand"

PBZ BANK LTD